Shiba Inu: Nearly 500k wallets have Shibarium on lock

• The number of addresses on the Shibarium network closed in on 500,000.
• A high number of SHIB circulated but most went into exchanges.

Since Shiba Inu [SHIB] introduced its Layer two (L2) ecosystem Shibarium, it has hit milestones upon milestones. According to the Shibarium explorer, the number of addresses using the L2 was now 447,076.

How much are 1,10,100 SHIBs worth today?

As of 23 August, very few transactions were made on Shibarium. Fast forward to 30 August, daily transactions rose to 68,402. This brought the total transactions on the Shibarium network to 617,492.

Wallets increase, TVL undecided

The growth in wallets implies how adoption has been impressive with the Shiba Inu ecosystem. When the Shiba Inu team ideated Shibarium, it aimed to create an L2 backed by SHIB tokens, and built on the Ethereum [ETH] blockchain.

While it has been put the project for public use, there was a quiet period where the SHIB community did not experience traction despite the hype around it. Interestingly, the hike in addresses and transactions has also spread to the Shibarium Total Value Locked (TVL).

With the help of protocols like DogSwap, Shibarium’s TVL reached $1.42 million. The TVL shows the level of unique deposits into a protocol. An increase suggests high liquid input while a decrease in the metric implies a dearth of activity on the network.

Source: DefilLlama

Although DogSwap had an 11.39% increase in the last 24 hours, other DEXes like Shibex, LeetSwap, and Woof Finance registered declines. 

SHIB: Not yet at its top

Meanwhile, Shibarium’s launch seemed to be a “buy the rumor, sell the news” event. This was because of the state of the exchange inflow and outflow. Based on on-chain data, SHIB’s exchange inflow was 29.25 million.

Exchange inflow measures the transfer of tokens from non-exchange wallets into exchange wallets. The exchange outflow on the other tracks the movement of tokens from exchange wallets to non-exchange wallets. At press time, the exchange outflow was 2.08 million.

Source: Santiment

A 20 million difference in inflow and outflow tilts toward a bearish bias for Shiba Inu. Therefore, SHIB may undergo another round of correction unless the outflow meets up with the inflow pace.

As per circulation, Santiment showed that SHIB tokens used between 30 and 31 August increased. At the time of writing, about 7.88 trillion tokens have been involved in transactions, meaning Shiba Inu’s formerly overlooked state has changed. 

Realistic or not, here’s SHIB’s market cap in DOGE terms

For the Market Value to Realized Value (MVRV) Z score, it was down to -3.43. The MVRV Z score is a function of the difference between the market cap and the realized cap of an asset.

Source: Santiment

High values of the Z score imply that an asset may be overvalued. However, the MVRV Z score in the negative region means SHIB could be undervalued, and there might be a buying opportunity at its current value.